Oregon Tax Rates & Rankings Oregon Taxes

Located in the Pacific Northwest, Oregon is a state of contrasts. It has mountains and beaches, forests and deserts, cities and farms. Additionally, it also has a multi faceted tax system that affects how much money you take home.

what is oregon income tax

You need to file if your gross income is more than the amount shown below for your filing status. Even if you don’t have a filing requirement, you must file a return if you want to claim a oregon income tax rate refund of Oregon income tax withheld from your pay or you qualify for a refundable credit. The first thing to know about the state of Oregon’s tax system is that it includes no sales tax.

Tax calculator

As the name suggests, this is essentially the state equivalent of the W-4. One of the biggest items taken from your paycheck is federal income tax. This is a tax that applies to all US workers regardless of where they live or work. The amount of federal income tax you owe depends on your filing status, income level, etc. You can adjust your federal income tax withholding by filling out Form W-4 and giving it to your employer. Capital gains in Oregon are subject to the normal personal income tax rates.

Policymakers at all levels of government should avoid the pitfalls of incentives. Instead, they should focus on creating a more efficient, neutral, and structurally sound tax code to the benefit of all types of business investment. Any move to repeal the cap or enhance the deduction would disproportionately benefit higher earners, making the tax code more regressive. Oregon does not collect sales taxes of any kind, at the state or local level.

Oregon Tax Rates, Collections, and Burdens

In recent decades, income inequality has climbed to historic levels. Not coincidentally, business taxation has declined and tax rates for the superrich have collapsed. Those living or working in Metro may be charged a payroll tax called the Metro Supportive Housing Services (SHS) Personal Income Tax.

  • You can deduct the amount of your expenses that exceeds 7.5% of your federal adjusted gross income (AGI).
  • So only income over certain limits will see this tax which helps to raise money for supportive housing services for people experiencing homelessness or are at risk of experiencing homelessness.
  • The thing to note is that it doesn’t take much income to get to the next-to-highest tax bracket of 8.75 percent.
  • SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
  • Oregon has an estate tax for estates valued at more than $1 million.